DBAG invests in mageba AG

Additional capital for family business in a growing market

Support for expansion of product portfolio and further internationalisation

First transaction in Switzerland

Frankfurt am Main, 16 December 2015. Deutsche Beteiligungs AG (DBAG) and its managed DBAG Expansion Capital Fund (ECF) announced that they will acquire a substantial minority interest in mageba AG (mageba), a leading global provider of structural bearings, expansion joints and other products and services for the infrastructure and building sectors. DBAG will invest about 47 percent and DBAG ECF some 53 percent of the investment sum. The investment was agreed yesterday by DBAG, DBAG ECF and the principal shareowners of the Swiss family business. The transaction is to be completed in the first quarter of 2016 and is contingent on approval by the cartel authorities.

By acquiring an interest in mageba, DBAG is investing in a family-run company operating in an attractive and growing niche market. Structural bearings ensure the controlled transfer of forces between a bridge’s superstructure and its substructure; expansion joints absorb the longitudinal movements in bridges that occur through temperature variations and traffic load. In many countries, infrastructure expenditures are increasing faster than the gross national product, since many existing structures need to be rehabilitated or new transport infrastructure is being built in response to increasing mobility.

Seismic protection is one of the business areas to be expanded with the support of DBAG. Many countries have budgeted additional funding for projects in this area. Mageba provides structural dampers for these applications that not only dissipate seismic forces resulting from earthquakes, but also absorb noise and vibration.

Mageba has equipped more than 20,000 structures all around the world with bearings and expansion joints – including some of the world’s longest and most heavily-used bridges. Well-known projects include the Öresund Bridge between Sweden and Denmark or the Kochertal Bridge on the A6 motorway in Germany, at 185 m above ground level one of the country’s highest valley-spanning bridges. In the market’s engineered high-end segment, mageba, founded in 1963, is considered to be the leading, innovative provider. The company employs a staff of more than 800 worldwide, including more than 100 engineers. About 120 people work at its headquarters in Switzerland; mageba has subsidiaries in Australia, China, Croatia, Germany (Göttingen), Hungary, India, Mexico, Slovakia, South Korea, Turkey, the UK and the US, among other locations. The company expects revenues in 2015 of some 97 million Swiss francs (90 million euros).

“With additional equity capital, mageba will be able to better utilise the opportunities inherent in the market’s growth,” said Dr Rolf Scheffels, member of the DBAG Board of Management, on signing the agreement. “We also intend to back the company in its further internationalisation.” Thomas Spuler, Chairman of the mageba Board and one of the two principal shareowners, emphasised the experience DBAG has had in supporting family-run enterprises in their global growth: “We want to continue to grow and are confident that DBAG will play an important role in helping us achieve that goal”.

Mageba is the first Swiss company in the portfolio of DBAG, which has invested in mid-sized companies, primarily in Germany, for more than 50 years. DBAG and DBAG ECF will acquire shares from the two principal shareowners, Thomas Spuler and Gianni Moor, who will continue to hold the majority in the company. To increase the capital-to-assets ratio and the company’s financing flexibility, DBAG and the fund will subscribe to a capital increase. In total, approximately 15.1 million Swiss francs will be invested (14.0 million euros). Since 2012, DBAG has been investing alongside the DBAG Expansion Capital Fund in minority stakes in strongly growing, largely family-managed businesses. Mageba is the fund’s seventh investment.